Market Report 2011

Written by Del Real Properties on .

Marbella Real Estate Market Report 2011 and Forecast for 2012.
At the time of preparing this market report, the world, and Europe in particular, is once again facing great uncertainty. Many of us thought the worst was over when our economies seemed to have weathered the initial storms and begun their slow return to growth, with gradual recovery a reasonable expectation. Now, just three years on from the financial crash brought on by the subprime crisis, we seem to be facing another financial crisis – and the dark clouds of recession gather menacingly once again.

A normal macroeconomic downturn has been exacerbated by a private sector crisis in 2008 and a public sector crisis in 2011. As a result, the little solid footing we thought we had is fast turning to quicksand and the markets are reacting accordingly, fluctuating wildly but mostly downwards. In times like these, confidence is a concept lost and economic boom an almost unimaginable state, so we turn to those things that offer solidity – like gold, land and, in some cases, bricks and mortar – and wait out the storm.

The closing months of 2011 should bring clarity one way or another, and though many possible scenarios are currently being sketched, from dissolution of the Euro and even the European Union to a satisfactory solution to the sovereign debt crisis and accompanying financial instability, it is important to remember that things are never quite as critical as they might seem at a time like this, just as they are never quite as wonderful as they seem during periods of boom and plenty.